by Mike Bourland
American Football Coaches Foundation
Courtesy: AFCA
Release: 11/01/2009
In previous editions of the Extra Point, we discussed various methods of Planned Giving which can assist The American Football Coaches Foundation (the “Foundation”) meet its financial requirements. Planned Giving is the structured and pre-planned way to donate to the Foundation. It is charitable giving through Wills, Living Trusts, Life Insurance and other advance planning methods. In the last issue of the Extra Point, we discussed giving to the Foundation through the Planned Giving technique called Charitable Gift Annuity. In this issue, we will discuss giving to the Foundation through a Charitable Remainder Trust (“CRT”). But before we discuss the CRT Planned Giving technique, let’s again review some of the previously discussed Planned Giving techniques, as well as key aspects of the Foundation, its goals and how it accomplishes its goals.
When a donor names the Foundation as a beneficiary of his Will or Living Trust, property passes to the Foundation at the donor’s death. Additionally, a donor can make a gift to the Foundation by designating the Foundation as the beneficiary of a life insurance policy on his life. A Charitable Gift Annuity is part charitable gift and part purchase of an annuity.
As a contrast to the sophisticated techniques described above, a gift of cash is simple – just write a check and give it to the Foundation. Another easy way to make a contribution is by giving the Foundation property that has grown in value since you acquired it.
In regard to the goals of the Foundation, we know the goals are to provide funding for the education of American football coaches to better serve the public through role modeling and character development for young men and young women and the promotion and enhancement of the coaches’ technical skills and coaching capabilities. The American Football Coaches Association (AFCA) is a tax-exempt trade organization. Contributions to the AFCA do not qualify for an income tax charitable deduction to the donor. As previously stated, the Foundation is a publicly supported, tax-exempt charity. Contributions to the Foundation qualify for an income tax and estate tax charitable deduction to the donor. Revenue generation activities of the Foundation should be structured to maintain its advantageous publicly supported tax-exempt charity status.
To meet the requirements of a publicly supported, tax-exempt charity, the Foundation must receive at least one-third (1/3) of its support from a broad range of donors, which includes AFCA member coaches. That is why your annual contributions and membership payment are anticipated and crucial to the success of the Foundation. For every dollar from an AFCA member coach, the Foundation can receive two additional dollars from a larger donor or donor foundation without endangering the Foundation’s favorable publicly supported, tax-exempt status. Because you are now familiar with this rule, you can see how every AFCA member coach’s personal involvement is important to the Foundation’s strategic game plan to solicit and receive contributions from wealthy individuals and their family foundations. With these types of gifts, the Foundation has funds that it can put to work immediately in support of the Foundation’s goals.
The Planned Giving technique to be discussed in this issue of the Extra Point is the
You can create and fund a
A gift through a
As a further reminder, you can acquire a Bench, Plaque, Capstone, Tile or Brick in the Plaza of Influence. The
Please continue to plan and conduct fundraising events in your community, such as banquets and golf tournaments. Proceeds from admissions, sales of merchandise, performance of services, or furnishing of facilities at an event are classified as “gross receipts” funds of the Foundation. Gross receipts funds should target a broad base of the community, as no single person can provide more than 1% of the Foundation’s total support through gross receipts and have it count toward maintaining the Foundation’s favorable tax status. Also, care should be taken so that no fundraising activity becomes an ongoing business to avoid the Foundation having unrelated business taxable income (UBTI) from the activity resulting in income taxation and possible loss of the Foundation’s tax exempt status.
Please consider making a gift to the Foundation through a CRT or some other Planned Giving Technique. Please encourage others to do this. Please continue to plan and conduct fund raising events in your community. Remember that the Foundation needs participation from every member coach in order to meet its goals.